- Goldman Sachs beat first quarter earnings Monday, with EPS of $5.71, 15% above consensus.
- It is the third major US bank to do so.
- On Friday, JPMorgan and Wells Fargo both announced better-than-expected results.
- Watch Goldman Sachs trade live.
Goldman Sachs is set to report its first-quarter results ahead of Monday’s opening bell. Here’s what Wall Street analysts surveyed by Bloomberg are expecting:
- Adjusted earnings-per-share: $4.97
- Operating profit: $2.7 billion.
- Revenue: $8.98 billion
- Adjusted net income: $1.87 billion
- Expenses: $6.22 billion
- Return on equity: KBW analysts led by Brian Kleinhanzl expect average ROE of 10%.
- Institutional client services: KBW expects $3.66 billion in revenue from trading stocks, bonds, currencies and commodities.
- Investment banking: Revenue of $1.84 billion may come from advising on mergers, and underwriting debt and equity offerings, according to KBW.
- Investment management: The research shop estimates $1.65 billion in revenue will come from managing money for institutions and wealthy individuals.
- Investing & Lending segment: Another $2 billion in revenue may come from gains in equity and debt investments, and lending activities, KBW estimates.
Credit Suisse analyst Susan Roth Katzke anticipates “weakness relative to year ago levels in both trading and investment banking.” Shes add that the bank’s forward outlook “ought to be as important as first quarter results.”
JPMorgan kicked off bank results Friday morning posting record results that shares climbing by more than 4%. Trading results at JPMorgan modestly beat expectations, potentially indicating a positive trading environment for Goldman.
“In the first quarter of 2019, we had record revenue and net income, strong performance across each of our major businesses, and a more constructive environment,” said CEO Jamie Dimon in the earnings statement.
This performance was in stark contrast to that of Wells Fargo, where CFO John Shrewsberry provided disappointing guidance on net interest margins, causing Wells Fargo shares to drop nearly 3%.
The bank is also expected to provide an update on the Malaysian 1MDB scandal, which has weighed on its shares.
Goldman Sachs was up 24% this year thorough Friday.